What recourse do I have if there was a lien filed on my property before I purchased it against previous owner?

This is why you need to hire a knowledgeable attorney to buy and sell real estate. Short answer: no you are not entitled to rescind the transaction. you are entitled to sue the former owner and get damages. The issue is whether or not they are collect able. However, before you do that. Contact the title insurance company that issued the title insurance to you to support the deed that you received when you purchased the house. That is what protects you from liens of this type title insurance. The title insurance company only has a defense if they listed it as an "exception" to the insurance and you ignored the exception. BTW What kind of Lien? If it is a construction lien you have a defense, they are only good for 1 year in Michigan. And can be removed easily without litigation.

Did you obtain an owner's title insurance policy when you bought the property? Did your purchase agreement state that the property was being sold free and clear? If you have a title policy, you can file a claim the same way you would with any other type of insurance. If the seller breached the purchase agreement, you also have recourse against the seller (assuming the seller is collectible). Otherwise, you will have to try to work something out with the lien-holder. Good luck!

Your question requires an attorney consultation. It is not a simple question that can be answered on this type of forum. There are many factors that would need to be considered and evaluated. I strongly suggest that you contact an attorney for a face-to-face consultation and give him/her all of the facts surrounding your situation. He/she would then be in a better position to analyze your case and advise you of your options.

First of all, it shows the importance of having an attorney represent you whenever you purchase real property. Secondly, you should have received title insurance when you bought - look at your title policy - if it shows that lien as an exception to title and you closed anyway, then you can't look to them to help you out -but if they do not show it - then I would contact the title company and have them help you out - it could be they missed it when they checked title. That said, if it is a construction lien - then the lien is no longer valid if legal proceedings were not started to enforce the lien within 1 year of the recording date - obviously you are well past that - there is a process we can follow for you to have the lien removed - in a sense - by recording an affidavit from the county clerk that no proceedings were filed to enforce that lien - that has the effect of removing it - probably best to have an attorney help you with that.

Take your paperwork to an attorney, who will need to review your deed, purchase agreement, the recorded lien and, more importantly, your title insurance. By whom did the lien go unnoticed the seller, the real estate agents and the attorneys?

I would have to look at the bill of sale, the lien and your title insurance. You should have remedies.

You have recourse against your seller and the title company that handled your sale. You may be entitled to rescind your contract and get your money back. You need to consult a real estate attorney to review all of the facts and documents and advise you how best to proceed.

This question requires more information. Did you obtain title insurance when you purchased the property? If so, you can tender a claim to the title insurer so long as the lien was not reflected on the preliminary title report and insured around with your consent.

It depends on what kind of lien was filed. If it was a mechanic's lien, it would expire after 8 months. But, it should have shown up on the title when you bought the property. I would check with your title company or contact an attorney to investigate.